What Bills To Consolidate
Debt consolidation and bill consolidation are essentially the same thing, as each bill being consolidated corresponds to a debt that's owed.
Common types of bills that people choose to consolidate include:
- Department store credit cards
Most department stores utilize third party lending services that charge interest rates as high as 30%! - High-interest credit cards
While they might not be quite as bad as store credit, many "normal" credit cards charge interest rates as high as 20%. - Old service bills (utilities, etc)
Depending on the service provider, interest rates and penalties can add up - and continued service may be threatened as well. - Personal loans
Unsecured loans may be turned into secured ones, or your improved credit score may make you eligible for a better interest rate. - Student loans
Both private and government funded student loans usually jack up the carrying costs after a set amount of time. - Legal and medical bills
Again often charge high interest rates, and can be hard to deal with as creditors.
If you're consolidating yourself by obtaining a loan you can choose to consolidate just about any bills you'd like to, so long as the new loan is large enough to cover them. If you're working with a debt management company to consolidate, they may have some bills that are admissible in their specific program and some that are not, but that will completely depend on who you choose to work with.